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Question about charging tax and shipping queens

A couple questions please.
I did a search but came up empty.

For those that are selling nucs and queens, are you required to charge sales tax?
I know it will depend on my state (Washington State) but I don't believe have never been charged tax for anything I have purchased for bee keeping, including equipment, queens and bees. I just wondered if because it is an agricultural product it is exempt.

What overnight shipper do you prefer for queens?

Overwintering 130+ colonies this year, I finally have enough assets to manage and product to sell to warrant more of a business format instead of a home farm project.
Thank you for your replies.

Re: Question about charging tax and shipping queens

In general, as a business located in Washington state, when you sell taxable items, if you sell to customers in Washington you need to collect Washington state sales tax. If you sell to customers out of state, and ship their products, it is not your responsibility to collect WA sales tax.

If out of state customers come to your location, you need to collect WA tax.

If your business has physical locations (nexus) in states other than Washington, then you may be obligated to collect sales tax for sales made to customers in those states also.

I have fond memories of dealing with the WA Department of Revenue years ago!

It looks as though certain beekeeping related items are not subject to WA State Sales Tax. See this form:

Re: Question about charging tax and shipping queens

There is no sales tax on honeybees (or other livestock ) in Wisconsin, or bee feed. Not sure which states differ.
Bees on comb are not taxable, but hive components without bees installed are. For instance, if we sell the woodenware, with a package for the customer to install, the woodenware is taxable but the bees are not. If we sell a complete live hive, none of the attached components (bottom board, covers, boxes etc) are taxable.
As far as I know there are no exeptions to tax free bees, no requirement to register apiaries etc.

The above applies only to hobbyists in Wisconsin, yes, farms (at least in Wisconsin) have sales tax exempt status. Or so says our accountant, I am sure no expert.

Sheri

Last edited by JohnK and Sheri; 02-08-2014 at 05:19 PM.
Reason: additional info

Re: Question about charging tax and shipping queens

I've never shipped queens but spoke with Walter T. Kelley last year about it. Heat kills, otherwise queens are robust and can handle multiple days in transit. USPS priority or express will work just fine when temps are cool. Shipping during the hot summer months June-July-Aug above 80-85F is risky no matter the service.

Good luck with your business, I would get rid of compound part of the name though, sounds wierd, like you're crazy. ;-)

Re: Question about charging tax and shipping queens

The best thing to do is contact your state revenue office for accurate information The sales tax rules very. agricultural exemptions do apply to bees, however in some states. Only to industrial beekeepers, Not hobbyist. As raider said you are responsible to collect tax on goods shipped out of your state. In fact it may be illegal to do so unless you have a tax license in that state.

Re: Question about charging tax and shipping queens

Lauri, in MS there is no sales tax on bees.

I use USPS express mail to ship all my queens. Local shipments will take 2 days because they go by truck. Rest will go air so most will make it overnight. Go to USPS.com and set up a click and ship account. You can print your express labels with postage paid. When you get to post office they only have to scan and print acceptance reciept. Really speeds things up and you get a discount compared to paying at PO.

Small orders go in flat rate envelopes with holes punched around edges. Larger orders go in rightway shippers I get from Mann Lake. All are in JZBZ cages.

Johnny

"Suppose you were an idiot and suppose you were a member of Congress. But I repeat myself." - Mark Twain

Re: Question about charging tax and shipping queens

Laurie, I would highly suggest you take this question to a tax adviser. For example you umay be exempt o the bees but required to tax for the equipment sold with them. There are not taxes on internet or catalog type purchases but it is my understanding you sell only locally for now. Here in Nevada there is no tax for non prepaired foods. Honey qualifies. But there may be a tax for selling bees. No idea about pollination services etc. I have to get busy about finding out this stuff myself. I know most markets in the area require you to have a tax i.d. and collect the taxes on your sales before you pack up and leave. Promoters can get hit by the government if they have shows where vendors did not charge or pay taxes.

Re: Question about charging tax and shipping queens

Originally Posted by Broke-T

Small orders go in flat rate envelopes with holes punched around edges. Larger orders go in rightway shippers I get from Mann Lake. All are in JZBZ cages.

Johnny

I am interested in the details of these methods of shipping do you just drop the small orders in the flat rate envelope? are they in a small box to protect them from being smashed? Do you mark them as containing live animals or even bees? Any issue with the post office with mailing them in the envelope? So many questions so little time. I guess maybe I could just drop a queen in an envelope and mail it to myself at work.

Re: Question about charging tax and shipping queens

Originally Posted by Daniel Y

I am interested in the details of these methods of shipping do you just drop the small orders in the flat rate envelope? are they in a small box to protect them from being smashed? Do you mark them as containing live animals or even bees? Any issue with the post office with mailing them in the envelope? So many questions so little time. I guess maybe I could just drop a queen in an envelope and mail it to myself at work.

Dude just call one of the many namebrand bee suppliers kelley, dadant, mann lake, weaver and ask them how ship. They ship quite a few so i'de think they heard all of the horror stories, should have figured out how to and how not to ship a queen. They will tell you straight up, they want your business.

A plastic jzbz cage is pretty weak, im sure wooden cage taped/secured to a wall of a flat rate box with a few small holes punched into it, the $6 box. I wouldn't label it, may freak out workers. They actually done studies were labeling something fragile is actually no better than no labeling it.

The biggest key is not to ship in the heat of the summer, if you do get next day or 2nd day.